The Victorian Default Offer is the ESC-set price for the default electricity offer (standing offer) in Victoria.
📍 The Victorian Default Offer (VDO) applies in Victoria only. It is the state-based regulated electricity pricing benchmark set by the Essential Services Commission (ESC) and operates as Victoria’s equivalent to the Default Market Offer used in other regions.
The Victorian Default Offer is reviewed and set each year by the Essential Services Commission (ESC).
As part of the annual review, the ESC considers:
⚡ Wholesale electricity costs
🔌 Transmission and distribution network charges
🍃 Environmental scheme obligations
Retail operating costs Updated VDO prices usually take effect from 1 July and apply for a 12-month period.
The Victorian Default Offer mainly applies to customers on standing offer contracts.
While the Victorian Default Offer directly caps prices only for standing offers, changes to the VDO can also have indirect effects across the broader electricity market.
When the VDO is updated:
1️⃣ Retailers may review their market offer pricing and plan structures
2️⃣ Existing market offers may change, and new offers may be introduced
3️⃣ Some plans may be withdrawn or replaced over time
As a result, even customers on market offers may notice changes to available plans or pricing following annual updates to the Victorian Default Offer.
Understanding how the VDO works can help Victorian customers:
✅ Identify whether they are on a standing offer
✅ Use the reference price to compare electricity plans
✅ Better understand why electricity prices change year to year
✅ Avoid remaining on uncompetitive plans by default
The Victorian Default Offer provides an important safety net, but it may not always represent the most cost-effective option available.
This website is operated by Zembl, an independent energy services provider. Zembl is not a regulator and is not affiliated with the Essential Services Commission or any government authority. The purpose of this site is to provide general, educational information about how regulated electricity reference prices work in Victoria. All content is written in original language using publicly available information.
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The Victorian Default Offer (VDO) is a regulated benchmark electricity price set each year by the Essential Services Commission (ESC) for customers in Victoria. It sets the price for default standing offer electricity contracts and acts as a reference point for comparing market offers.
The VDO applies in Victoria only. It is Victoria’s regulated benchmark for electricity standing offers.
While the VDO directly caps prices only for standing offers, updates to the VDO can have a knock-on effect across the wider market, retailers may adjust market offer prices, discounts, or plan structures, so available market plans and pricing can change after each annual update.
Not necessarily. The VDO is designed as a benchmark and safety net, not a guarantee of the cheapest available plan. Market offers can be priced above or below the VDO.
A standing offer is a default electricity contract with standard terms and conditions. In Victoria, retailers must price standing offers at or below the VDO for eligible customers.
A market offer is a retailer’s competitively priced plan that may include discounts, incentives, or fixed-term pricing. Market offers can be priced above or below the VDO reference price depending on the plan.
The VDO acts as a reference price so customers can compare electricity plans more easily and understand whether an offer is above or below the benchmark.
The ESC reviews the VDO each year and considers the efficient costs of supplying electricity, including wholesale electricity costs, network charges (transmission and distribution), environmental scheme obligations, and retail operating costs.
Updated VDO prices usually apply from 1 July and run for a 12-month period (to 30 June).
The ESC typically releases a draft decision around March and a final decision in May, ahead of the 1 July start date. For 2025–26, the ESC released its draft decision on 13 March 2025 and its final decision on 21 May 2025.
They can. While the VDO directly caps prices for standing offers, annual VDO updates can have a knock-on effect across the wider market as retailers review market-offer prices, discounts, and plan structures—so available plans and pricing may change over time.
In Victoria, the VDO generally extends price protection to customers in embedded electricity networks (such as some apartment buildings and similar site-based arrangements), depending on eligibility and how electricity is supplied at the site.
The ESC’s annual update reflects movements in cost components such as wholesale electricity prices, network charges, and retail operating costs.
The ESC set VDO prices for 1 July 2025 to 30 June 2026, with average annual bills increasing by about 1% for domestic customers and 3% for small business customers (averages vary by distribution zone and tariff).
No. This is an independent informational website and is not affiliated with the ESC or any government authority. (It’s intended for general information only).
No. The information is general in nature and doesn’t constitute energy, legal, financial, or other professional advice.
If you choose to request it, Zembl may provide an optional bill comparison to help you understand how your current bill compares with available market offers. This is separate from the informational content and not affiliated with the regulator.